Rythu Bandhu Pathakam ( Pledge Loan Scheme )


To prevent farmers from resorting to distress sales, Rythu Bandhu Pathakam has been introduced in the Agril. Market Committee to provide finance to the farmers against pledge of their produce. 




         There is no budgetory restriction for giving advances under Rythu Bandhu Pathakam.


         The Advances are limited to 75 % of the value of goods pledged subject to a ceiling of Rs.50.000/- per farmer.


         Every farmer shall be eligible for the Pledge Loan subject to a maximum of Rs.50,000/- or 75% of the value of the produce pledged whichever is less.


         Interest will not be charged on the loans sanctioned under Rythu Bandhu Pathakam for the first 90 days.


         From 91st day onwards, simple interest is to be charged on the loans.


         Pledge loan is sanctioned to farmers who store their produce in the Godowns of State/Central Warehousing Corporation where Agrl., Market Committees do not have their own godowns or due to non availability of space in their godowns. The Warehousing Corporations concerned shall have to give an undertaking to the Agricultural Market Committee that they will not allow the farmers to remove or sell the stocks without the specific and prior approval of the concerned Agricultural Market Committee.  Details of loans given are:-


Year                 Amount of loan given  No. of Farmers

                                                (Rs. in Crores)                          Benefited

                        1999-2000                     14.91                            5521

                        2000-2001                     17.01                            5640

                        2001-2002                     35.19                            9401

                        2002-2003                     73.66                            20414

                        2003-2004                     54.00                            22534

                        2004-2005                     34.88                            11145

                        2005-2006                     38.00                            11705

                        2006-2007                     31.13                            16566


Sale of Inputs:


            To make available the  quality seeds, pesticides and fertilizers to the farmers in the Market Yards, the Agricultural Market Committees have been permitted to take up the sale of quality seeds, pesticides and fertilisers on no-loss-no profit basis.  The details of performance of the scheme are :-

 Year                             Sales            No. of  farmers

                                                (Rs. in Crores)           Benefited

                        1999-2000                     33.06                289951

                        2000-2001                     17.05                142482

                        2001-2002                     14.02                181158

                        2002-2003                     16.72                143822

     2003-2004                     22.10                344288

     2004-2005                     11.81                172873

     2005-2006                     13.69                184382                


Cold Storage Units :


  1.             A.P. Capital Intensive Subsidy Scheme for Cold Storages has come into force from 1-7-1999 and was in operation for a period of 2 years i.e., upto March 2001.  Subsidy was given to the private entrepreneurs to the extent of 25% of the fixed capital investment subject to a maximum of Rs.50 lakhs per unit of the cold storage set up by them.  Under the scheme applications were received from 70 Cold Storage Units. 



Soil Testing Laboratories :


Government have sanctioned 55 Soil Testing Laboratories in the Market Yards in the State in the Revenue Division Headquarters at a cost of Rs.6.21 Crores.  Out of 55 Soil Testing Laboratories, 52 are functioning in various Agrl. Market Committees with the staff of Agriculture Department and 3 in the premises of Agriculture Department.  The respective Agricultural Market Committees are meeting the cost of the chemicals etc., to test the soil samples.




Training classes are organised to farmers at all Market Committees to educate the farmers on the crops to be raised, application of manures and pesticides, storage problems of food grains and other allied subjects with the cooperation of other concerned Departments such as Agriculture Department/APAU/ Horticulture Department etc. So for, 6.50 lakhs of farmers have been trained. The training is basically on agricultural operations in Kharif and Rabi seasons. The number of programmes are 4 per year. These programmes are being conducted every quarter to educate the farmers on crop pattern with the help of Agriculture Department to impart training for 300 farmers at a time in the jurisdiction of every Market Committee.


Training to farmers at AMCs

Year                             No. of farmers



                   1999-2000                     2,48,363

2000-2001                                   2,65,114

2001-2002                                   2,65,000

2002-2003                                   1,23,950

2003-2004                       89,022


            Each market committee is permitted to spend Rs.95,000/- per year for conducting four training programmes i.e., pre-khariff, 1st interaction, pre-rabi and 2nd interaction.




            The details of computerization programmes of the Department are :


       82 Market  Committees have been computerised in 1st phase by ECIL.

       54 more Market Yards were computerised by DMI, Govt. of India in collaboration with NIC.

       The details of arrivals and prices of various commodities are being reported  to Head Office through this network.

       The information received is being daily updated in the departmental website http://market.ap.nic.in The site also contains information pertaining to Department.

       50 major market yard are provided with Automatic Audio Video Display Announcement System which displays the arrivals and prices of commodities of different market yards.

       Other information benefiting the farmers such as education, health, soil conditions, etc., is also displayed through the above Announcement system.

       It is proposed to computerise all the  Agricultural Market Committees in the State.






The Action Plan of Marketing Department for future includes  strengthening of infrastructure in the market yards; modernization/ computerization of market yards; provision of digital weighing machines in all major market yards; coverage of more villages under link roads scheme; extension of Rythu Bandhu Scheme to cover small and marginal farmers; the spread of Rythu Bazaar facilities; and creation of awareness of FAQ standards among farmers; and formulation of a micro-level plan on area, production, marketable surplus and value.




1.                   Development and strengthening of market yards and to bring more market yards under regulation.

2.                   Daily collection and display of price data through web based technology.

3.          Interactive Voice Response System (IVRS) to provide data on Market Yard information to be developed with the help of  N.I.C.

4.         Touch screen KIOSKs to be installed at major market yards for dissemination of  information for the benefit of farmers.

5.         To develop infrastructure for prawns and fish Marketing

6.         To help export of fruits.

7.          To organize contract farming for developing medicinal plants, hybrid vegetable etc.